Corporate result: Indus Motor posts Rs11.45b profit in FY16, up 26%

Net sales rose 2.6% year-on-year to Rs29.1 billion

KARACHI: Indus Motor Company - the makers of Toyota Corolla in Pakistan - has posted a net profit of Rs11.45 billion in the fiscal year ended June 30, 2016, up 26% compared to Rs9.11 billion in the previous year, according to a company notice sent to the Pakistan Stock Exchange (PSX).

Earnings per share jumped to Rs145.74 from Rs115.91 last year.

Along with the result, the company also declared a final cash dividend of Rs40 per share, taking the total pay-out to Rs100 per share for fiscal year 2016.

In the PSX, the share price of Indus Motor rose 1.2% to close at Rs1,139.37 on Friday. The benchmark KSE 100-share Index ended at 39,926 points, up 134 points or 0.34%.

Net sales of Indus Motor rose 2.6% year-on-year to Rs29.1 billion. The growth in volumetric sales remained restricted as the company sold 16,473 units in the April-June quarter against 16,802 units in the same period of previous year.

This was primarily due to a 6.9% year-on-year decline in sales of Corolla, the company’s flagship vehicle, to 14,108 units.

Sales of other variants provided some support as demand for Hilux grew 48.3% year-on-year to 2,191 units while Fortuner sales increased 5.5% to 174 units in the period under review, Topline Securities reported.

Distribution cost stood at Rs353 million in line with the historical trend of 0.9% of net sales. The company reported tax expenses of Rs1.9 billion with an effective tax rate of 42.8%.

Published in The Express Tribune, August 27^th, 2016.

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